India (Commonwealth Union)_ India’s recent imposition of a ban on onion exports has reverberated throughout Asia, causing a surge in onion prices for regional buyers who are now seeking more affordable alternatives. This predicament is exacerbated by the likelihood that New Delhi will not lift the restrictions until after the upcoming general elections next year. As the world’s leading exporter of onions, India enforced the export ban this month in response to a more than twofold increase in domestic onion prices over three months due to a decline in production.
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As a result of this ban, the consequences are being felt by retail shoppers across Asian cities, from Kathmandu to Colombo, as traditional buyers like Bangladesh, Malaysia, Nepal, and even the UAE depend on Indian imports to fulfill domestic demand. Mousumi Akhtar, employed in the private sector in Dhaka, the capital of Bangladesh, lamented, “Onions are needed for almost everything we cook. This sudden price hike is tough to swallow. I’ve had to cut back on how much I buy.”
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The dependence on Indian supplies is notable in various Asian cuisines, from Malaysia’s belacan shrimp paste to Bangladeshi biryani, Nepali chicken chillies, or Sri Lankan fish curry. According to the estimation of traders, India accounts for over half of all onion imports from Asian countries. Additionally, the shorter shipment times from India, compared to rival exporters like China or Egypt, are crucial for preserving the freshness and taste of this perishable commodity. In the financial year ending on March 31, India exported a record 2.5 million metric tons of onions, with Bangladesh being its largest buyer, receiving 671,125 tons.
2 retail.economictimes.indiatimes.com
A commerce ministry official stated that Bangladesh is now seeking additional onion sources from China, Egypt, and Turkey as a result of the shortage caused by the ban. As Bangladesh approaches general elections, the government is taking measures such as selling onions at subsidized prices to alleviate the impact of a more than 50% surge in prices following India’s ban. The situation is even more challenging for landlocked Nepal, which relies heavily on onion imports. According to an official from Nepal’s commerce ministry, “Since the ban by India, we have monitored the supply situation at different places. There are no onions on sale.” Nepal is now seeking imports from China and may request that India give an exception and allow exports.
According to an Indian exporter, importing nations are grappling with costly supplies from China, Iran, Pakistan, and Turkey, all of which have increased prices in the absence of Indian onions. While India’s onion prices dropped by 20% within a week after the ban due to adequate domestic supply, exporters argue that India should resume exports to maintain its global market position. However, the export restrictions are unlikely to be lifted before next year’s general elections, as the Indian government, under Prime Minister Narendra Modi, prioritizes controlling food prices. Additionally, New Delhi has also curtailed exports of rice, sugar, and wheat. Since India’s export ban, Sri Lanka has seen a nearly doubled increase in onion prices, while Malaysia, like other importers, is exploring alternative supplies from China and Pakistan.
